The equation calculates an annual rate in economics.

What rate does the equation calculate?

employment rate

inflation rate

demand rate

supply rate

The equation calculates an annual rate in economics. What does the equation calculate? Inflation rate. Inflation is the overall increase in the consumer price index. The consumer price index or CPI, is a measure of the changes over the year by the prices paid for consumers basket on a market basket of these consumer goods. This annual index shows the variation of prices paid by consumers for retail goods.